The highly anticipated launches of the new Sony PS 3 and Nintendo Wii game
systems represent an important milestone for IBM™s Technology Collaboration
Solutions business, especially for the IBM Burlington and East Fishkill sites.

These new systems, along with Microsoft™s Xbox 360 released late last year, represent the culmination of IBM™s triple crown win as the provider of
technology for next-generation game consoles. While each console takes a
different approach to gaming, they all are powered by microprocessors
developed, designed, manufactured and tested by IBM. Consumers now have more computing power plugged into their televisions than they have in the PCs sitting on their desks.

This is a significant win in a fast growing marketplace, and our gaming
technology is poised to not only transform consumer entertainment, but also
other computing applications in medicine, science and education.

Organizations and individuals across IBM Burlington have been key to the
successful launch of these new game systems, from design, to mask
manufacturing, to test and more.

To celebrate, all Burlington employees are invited to enjoy a free meal on
December 5 and 6 in the Building 969 cafeteria and on December 7 in the
Building 861 cafeteria, during regular serving hours. Managers will
provide you with a voucher for the free meal.

Also, be sure to check out the new game systems in the cafeterias during
the free meal.

My thanks to the entire Burlington team for this success and a year full of
accomplishment.